Equities in Canada’s largest centre kept their forward momentum going Wednesday, powered mostly by strength in energy and money stocks.
The S&P/TSX Composite Index jumped 133.58 points to 16,501.61.
The Canadian dollar forged ahead 0.12 cents to 75.33 cents U.S.
Energy stocks ruled the roost Wednesday, with Cenovus Energy hiking 43 cents, or 7%, to $6.61, while Enerplus took on 24 cents, or 6.7%, to $3.85.
Among financial stocks, Great West Lifeco zoomed $1.11, or 4.6%, to $25.01, while Manulife popped 80 cents, or 4.4%, to $18.81.
In the consumer discretionary category, Linamar soared $1.99, or 5%, to $42.03, while Canadian Tire spiked $3.73, or 3%, to $128.19.
Utilities weighed things down, with Canadian Utilities slumping 99 cents, or 2.9%, to $33.11, while Hydro One faltered 66 cents, or 2.3%, to $27.74.
In communications, Cineplex doffed 24 cents, or 3%, to $7.81, while Corus Entertainment docked six cents, or 2.4%, to $2.41.
In consumer staples, Jamieson Wellness forfeited 82 cents, or 2.1%, to $37.94, while Metro Inc. dropped 69 cents, or 1.2%, to $58.30.
On the economic calendar, Statistics Canada said Canadian merchandise imports and exports rebounded sharply in June, mostly on the strength of motor vehicles and parts.
The agency added imports rose 21.8% and exports were up 17.1%. Canada's merchandise trade deficit with the world widened from $1.3 billion in May to $3.2 billion in June.
ON BAYSTREET
The TSX Venture Exchange moved past breakeven 5.51 points to finish Wednesday at 747.08.
All but three of the 12 TSX subgroups were positive on the day, led by energy, gushing 3.4%, financials, richer by 1.5%, and consumer discretionary stocks, improving 1%.
The three laggards were utilities, dropping 1.2%, communications, down 1%, and consumer staples, off 0.1%.
ON WALLSTREET
Stocks rose on Wednesday on the back of strong Disney earnings and coronavirus vaccine hopes. However, gains were capped as July private payrolls data disappointed and lawmakers continued negotiations on a new virus stimulus package.
The Dow Jones Industrials vaulted 373.05 points, or 1.4%, to 27,201.52, posting a four-day winning streak.
The S&P 500 strengthened 21.26 points to 3,327.77, also closing higher for a fourth straight day.
The NASDAQ acquired 57.23 points to a record high of 10,998.40, and posted a six-day winning streak
Wednesday’s gains put the S&P 500 about 2% below a record set on Feb. 19. The broader market index has rallied more than 50% since hitting an intraday low on March 23, led in large part by major tech stocks such as Facebook, Amazon, Netflix, Apple, Alphabet and Microsoft.
Disney earned eight cents per share, while analysts expected a loss of 64 cents per share. Disney said it now has 100 million paid subscribers across its streaming services, which include Disney+, Hulu and ESPN+. Disney shares popped 8.8%.
Johnson & Johnson announced it struck a $1-billion deal with the U.S. government to manufacture 100 million doses of its coronavirus vaccine candidate if it proves successful. J&J shares rose 0.8%. Novavax shares jumped 10.4% after the company reported phase one vaccine trial results that showed a positive immune response among patients.
Airline stocks rose broadly after Senate Republicans said they supported an additional $25 billion in federal aid for the industry. United Airlines closed 4.5% higher and Delta advanced 3.1%. American Airlines jumped 9.5%.
ADP reported Wednesday that private payrolls in the U.S. increased by just 167,000 in July. That’s well below a Dow Jones estimate of one million and represents a tumble from the 4.314 million added in June.
The ADP report is seen as a preview to the government’s monthly jobs report, which is forecast to show a gain of more than 1.2 million jobs’
The final read on July Services Purchasing Managers Index was released this morning. Economists polled by Dow Jones expected a read of 49.6, the same as June. Finally, the Institute for Supply Management’s non-manufacturing survey was also set for release. Economists estimated a red of 55, down from June’s read of 57.1.
Traders also grappled with continuing talks in Washington over a new coronavirus stimulus package.
The White House and Democratic congressional leaders have reported some progress in the negotiations, but they remain apart on some issues.
Prices for the 10-Year Treasury dropped sharply, raising yields to 0.55% from Tuesday’s 0.51%. Treasury prices and yields move in opposite directions.
Oil prices piled on 45 cents to $42.15 U.S. a barrel.
Gold prices leaped $29.90 to $2,050.90 U.S. an ounce.
